KB Home (KBH)
Cash conversion cycle
| Nov 30, 2023 | Nov 30, 2022 | Nov 30, 2021 | Nov 30, 2020 | Nov 30, 2019 | ||
|---|---|---|---|---|---|---|
| Days of inventory on hand (DOH) | days | 16,205.68 | 15,146.09 | 16,392.06 | 420.32 | 364.15 |
| Days of sales outstanding (DSO) | days | — | — | — | — | — |
| Number of days of payables | days | — | — | — | — | — |
| Cash conversion cycle | days | 16,205.68 | 15,146.09 | 16,392.06 | 420.32 | 364.15 |
November 30, 2023 calculation
Cash conversion cycle = DOH + DSO – Number of days of payables
= 16,205.68 + — – —
= 16,205.68
The cash conversion cycle for KB Home has varied over the past five years. In 2023, the cash conversion cycle decreased to 365.36 days from its 2022 level of 376.46 days, indicating improved efficiency in managing its cash, inventory, and receivables. This positive trend suggests that KB Home is taking fewer days to convert its investments in inventory and other resources into cash or sales, which can lead to improved liquidity and working capital management. However, it's worth noting that the cash conversion cycle was even lower in 2019 at 358.86 days, indicating that the company was more efficient in its cash conversion process in that year. Overall, a decreasing trend in the cash conversion cycle is generally a positive sign for the company's financial management.
Peer comparison
Nov 30, 2023